IncomeChecker.com

LTV Calculator

Find your loan-to-value ratio. Enter the loan balance and the home value, add a second loan or HELOC if you have one, and see LTV, combined LTV, your equity, and the paydown needed to reach 80%.

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$

Appraised value or purchase price, whichever is lower

$
LTV
85.0%
Combined LTV
95.0%
Equity
$15,000
Paydown to reach 80% LTV
$15,000

The formulas

  • LTV = loan balance ÷ home value
  • Combined LTV (CLTV) = (first loan + second loan or HELOC) ÷ home value
  • Equity = home value − all loans
  • Paydown to 80% LTV = loan balance − 80% of home value

Example. A $255,000 loan on a $300,000 home is 85.0% LTV. With a $30,000 HELOC, combined LTV is 95.0% and equity is $15,000. Paying the first loan down by $15,000 reaches 80% LTV.

Things to check

  • Lenders use the appraised value or the purchase price, whichever is lower, when you buy. Enter that figure, not a listing price or an online estimate.
  • At 80% LTV or below, conventional loans usually do not need private mortgage insurance. Above 80%, expect to pay PMI until you reach the threshold.
  • Cash-out refinances and home equity loans usually cap combined LTV. The cap varies by lender and program, so check with yours.

Frequently asked questions

What is loan-to-value (LTV)?

LTV compares the loan balance with the value of the property. A $240,000 loan on a $300,000 home is 80% LTV. A lower LTV means more equity and less risk for the lender.

What is the difference between LTV and CLTV?

LTV counts only the first loan. Combined LTV adds every loan secured by the property, such as a second mortgage or a HELOC.

What LTV do I need to avoid PMI?

On a conventional loan, 80% or lower at origination avoids PMI. If you already have PMI, you can usually ask to drop it once your balance reaches 80% of the original value. Rules differ by loan type.

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Calculators give estimates from the numbers you enter. They are not tax, legal, or accounting advice.